MADRID, Jan 8 (KUNA) -- Spanish Gas Natural Fenosa company said Tuesday it agreed with Algeria's Sonatrach oil firm to buy 10 percent of Medgaz, the underwater pipeline which transports gas from Algeria to Europe, with 61.9 million euros.

In a notification letter to Spanish securities committee, Gas Natural Fenosa said the agreement would further cement relations with Sonatrach. Both companies are already linked with agreements to export gas to Spain.

Medgaz, which started operations in 2011, is linking Bani Saf, northern Algeria, and Almeria, Spain. The two-billion-euro, 210-km-long Medgaz is supplying Spain with eight billion cubic meters of gas every year.

Medgaz supplies Europe with natural gas thus honoring growing energy demands in addition to meeting objectives of the Kyoto protocol.